NZ investment barrier to be removed in tax rules - Dunne
Proposed new tax rules would remove a barrier to non-residents investing into New Zealand, Revenue Minister Peter Dunne says.
Proposed new tax rules would remove a barrier to non-residents investing into New Zealand, Revenue Minister Peter Dunne says.
The changes were made in a supplementary paper to the Taxation (Tax Administration and Remedial Matters) Bill.
Mr Dunne said the current rules meant non-residents investing into Portfolio Investment Entities (PIEs) were taxed at 28 percent on all the income earned from a PIE, whether foreign or New Zealand-sourced.
"This means that these investors are over-taxed in comparison with how they would be taxed if they had invested directly," he said.
"The International Fund Services Development Group told us that this situation discourages non-residents from investing in New Zealand PIEs. It's a situation we needed to rectify."
Under the new rules, investors would be aligned with those for direct investment to ensure fairness of tax treatment.
Mr Dunne said he expected the legislation introducing the new rules to be enacted later this year.
NZPA and NBR staff
Wed, 06 Apr 2011
Wed, 06 Apr 2011
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NZ investment barrier to be removed in tax rules - Dunne
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